Key facts
- UK business investment in digital infrastructure rose from £6.3bn in 2019 to an estimated £11.6bn in 2024.
- The ONS revised its calculations to include data centres, software, and cables, aligning with international standards.
- Investment in data centres and fibre optic cables alone was estimated at £5.6bn in 2025.
- Over a third of businesses with 10 or more employees were adopting AI in 2026.
- Economists question whether AI is the primary driver of recent productivity gains.
Official data from the Office for National Statistics (ONS) reveals that investment in digital infrastructure in the UK has nearly doubled since 2019, reaching approximately £11.6 billion in 2024. This revised calculation, which now includes spending on data centres, software, and cables, brings the UK in line with international standards. Investment in assets such as data centres and fibre optic cables alone was estimated at £5.6 billion in 2025, marking a 94% increase since the start of the pandemic.
The ONS noted that the growing importance of data centres is reflected in this investment surge. Furthermore, projections suggest that current investment levels in data centres could quadruple by 2030, with 171 construction projects already being tracked. The ONS revised its methodology partly to better track AI-related investment, as business surveys indicate that over a third of companies with 10 or more employees were adopting AI in 2026.
Despite these figures and general optimism about the UK's productivity, leading economists have expressed skepticism about AI's direct contribution to higher growth. Analysts from the Resolution Foundation, Morgan Stanley, and the London School of Economics have separately highlighted a UK productivity "boom." However, the Resolution Foundation's analysis, based on payroll data, suggests productivity has been expanding by 1.1% annually since late 2024, a figure significantly higher than the ONS's estimate of 0.2%.
Pantheon Macroeconomics cautioned that there is "little evidence" to suggest AI is making workers more productive per hour. While AI adoption is increasing, data indicates it has not led to substantial headcount reductions. Surveys show that the majority of businesses report AI having "no material impact" on their workforce size, and job cuts attributed to AI remain low and stable. Economists Rob Wood and Elliott Jordan-Doak noted that AI's impact on vacancies and employment is equivocal, likely reflecting both job displacement and increased demand for certain roles. They suggest that while "big changes are afoot beneath the surface," current productivity gains may not signal a sustained trend.